The quantity of products made in China is increasing, while at the same time the price is decreasing. Many streets in Beijing are full of advertisements for discounted electrical home appliances ranging from color TV sets to air conditioning units. Many electrical home appliances made in China are exported to Europe and America, and consumers all over the world are constantly purchasing products marked “Made in China.” As China’s economy continues to evolve, the products of the country are beginning to enjoy a reputation for good quality with a low price.

However, when the products made in China enter international markets, Chinese enterprises are accused of patent infringements.  For example, last year the European Union accused China of patent violations on color TV sets.  6C Union went to China's export commodities fair in Guangzhou to drive out the enterprises that did not pay the patent-exploitation fee.  Not long ago, National scolded Haier for patent-infringement.  

 “This is only the beginning, and the serious conflict will follow,” Gao Shichen, a researcher on patent markets, said.  “In the future, foreign-related disputes over patents will happen frequently.  The scope of lawsuits relating to patents will become larger and larger and the penalties will often exceed RMB 10,000,000.”
The growing number of patent disputes results from a lack of vital technology possessed by Chinese enterprises.  “In the computers and mobile phones made by Chinese enterprises, we have to use key parts made by foreign companies because of key technologies, such CPU are possessed by them,” an employee from the Department of Technical Development of Founder Group told the reporter.  “Although the products made in China are of low cost and high quality, the Chinese enterprises have to depend on essential technology from other countries because of their own inferior technology." 

Gao Shichen explained the reason for the insufficient technology possessed by Chinese enterprises.  He stated that in the late 1970's, China began to develop electrical home appliances.  Yet, because of the lack of technologies at that time in China, new industries, such as those involved with IT, DVDs, mobile phones, and digital cameras, the Chinese enterprises had to use foreign technologies.  This borrowing of technologies necessary for production led to the current situation, where foreign industries dominate the patent arena.  

Qin Huaiwen, a professor in China University's Political Science and Law Department said, “Products made in China can not compete with foreign brands because of Chinese enterprises' lack of technologies. These enterprises are dependent on key parts made by foreign companies. If Chinese enterprises do not develop new technologies and their own independent intellectual property, they will be controlled by foreign companies forever.” Qin Huaiwen continued to say, “Intellectual property has become an outstanding problem for Chinese enterprises and causes the weakness of the products made in China.”